The equity growth in your home is unprecedented in Colorado history, and the average homeowner gained $78,000 this past year through September 30, 2021. This from an article by Aldo Svaldi from The Denver Post Published December 10, 2021.
The article goes on to state “About 63% of U.S. homes carry a mortgage and equity gains include the paying down of principal. But current gains are being driven primarily by record-setting gains in home values across the country.
Nationally, homeowner equity rose 31.1% year-over-year in the third quarter, creating $3.2 trillion in additional wealth. That translates into an average gain of $57,000 per homeowner, CoreLogic said.”
The Average Homeowner Investment
Homeowners continue to build wealth on their equity gains, and what does that mean to the economy? Eventually rising home values does cancel some buyers dreams while home equity growth gives existing homeowners extra spending power and flexibility. The last years pandemic economic uncertainty accelerated home prices so all existing homeowners saw unexpected growth.
In an article from AP News, “Rising homeowner equity creates a buffer for borrowers against potential financial hardship, such as job loss. And it can give homeowners financial flexibility to borrow against their equity to pay off high-interest debt or finance large purchases, such as home improvement projects, which can give a boost to the economy.”
So, the uptick of home prices have made it somewhat more difficult for those who want a foothold in the new market. It ultimately prevents these individuals to cash in on wealth accumulation derived from home ownership and properties.
In our blog from October 2021, we talked about the investor’s attraction to Denver real estate and the many reasons why investors find Colorado real estate a hot topic, even in today’s crazy marketplace. So, if you are wagering on near record money growth, talk to one of our experts at Katchen Company, who are all respected team players that will complement your buying experience and lead you in the right direction.